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Key takeaways from the blog:
- Application Modernization and Cloud supports customer experience management and inordinate customer expectations driven by Big Technology.
- It offers traditional BFSIs a superior position during JGTMs with fintechs.
- It seamlessly supports innovation and farming.
Customer experience management drives big change. Today, customer expectations are inordinately stirred by the advent of the Big Technology in daily lives, such as Google, Apple, Facebook, and Amazon, and contextualized experiences that go along. Delving deeper into existing customer bases and proactively discovering opportunities for innovation and farming allows adapting to change in a controlled manner. Yet it allows to manage and stir customer experience. Application Modernization over the Cloud is one of the major demands of the dynamic markets and agile operations, especially in the traditional sectors, such as banking, financial services, and insurance. Application Modernization enables these traditional institutions to stay ahead during joint go-to-markets and collaborations with fintechs and born-in-the-cloud companies.
Top 6 reasons for Application Modernization in the BFSI sector
Here is a compiled list of the six major business drivers for Application Modernization. These reasons always existed. However, they have received a significant impetus in the digital push of the 2020s era, thus accelerating the digital transformation and accelerated Cloud adoption.
- Business expansion and growth: Inflexible legacy systems restrain growth and expansion. Cloud Application Modernization improves the flexibility of the core applications to launch new business lines using the same infrastructure with improved capacity building and geographical reach. It enables sustainable growth, expansion, and revenue generation.
- Data democratization and monetization: Restricted data access to only a limited and select few processes impedes innovation. However, BFSI data involving legacy applications is usually siloed at field level and at a systemic level. Unlocking the data fields within the organization through Application Modernization allows monetization through up-selling and cross-selling. This data democratization is synonymous with growth.
- Innovation at scale: Digital operation is an innovation and growth accelerator. It is channelized through digital integration between different workflows that function only at siloed application levels. Application Modernization unlocks the innovation streak of legacy applications that are then easily integrable with the other modern applications in the IT estate. This application integration is the key for seamless Digital operation.
- Digital adoption and transformation: Legacy applications possess monolithic architectures and are heavy. Application modernization is microservices architecture and container-based that imparts flexibility and agility to the application architecture. It is the key to digital transformation. It enables traditional businesses to match the step with fintechs and at the same time cater to traditional modes of operation.
- Application scalability: Legacy applications have limitations and have limited scope for scaling up operations to support organic and inorganic growth. Cloud-based Application Modernization infuses high scalability in the application to meet increasing infrastructure and computing demands on the business’ growth trajectory.
- API supported integration: Traditional applications may or not have API support. Modernization exposes APIs that allow seamless integration across the IT estate. Cloud Native environment supports core transformation and integration. It offers the support, speed, and scope for innovation-led growth.
Benefits of Application Modernization
BFSI institutions, which engage in traditional business operations, tend to benefit the most from Digitalization and Application Modernization. It supports agile, shift-left, and fail fast in a dynamic market. It is cost-efficient and viable at the same time offering quick return on investment. Some of the prominent benefits are –
- Scalability: The modernized application platform supports scalability and high concurrent loads brought in through both organic and inorganic growth. The application performance is seamless even in the face of a lack of core application software support.
- Innovation at speed: The modernization allows building and delivering innovative features at speed with reduced dependency on software support. It allows partnering with born-in-the-cloud fintechs, on superior ground, to improve market reach and market share.
- High operational efficiency: It offers high availability and application efficiency. The distributed architecture supports seamless operations with maximum application uptime. Any disruption at one Cloud segment does not have any impact on availability.
- Higher security: It offers higher security with better end-to-end encryption, infrastructure control, and ISO certifications.
- Market dynamics: It supports agile markets and new business opportunities with extensive geographic reach and cost-efficient operations. Data democratization and role-based access support proactive data leverage for tapping new opportunities and organic growth.
- Anytime anywhere access: It leverages Cloud Native environment for anytime anywhere access and operations in a secure environment.
Simply put
Application Modernization over the Cloud supports the requirements of traditional businesses in dynamic markets, especially in the BFSI sector. It confers a superior position during joint go-to-markets with fintechs while supporting business expansion and growth.
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